DigiCo Infrastructure REIT has signed a 15-year contract for 71MW of capacity at its SYD1 data centre with an unnamed global technology company, taking the Sydney facility to full contracted capacity across 88MW.
The ASX-listed trust said the customer has investment-grade credit support and the agreement includes the reallocation of 20MW of capacity already under contract. The remaining 17MW at SYD1 is leased to colocation customers.
The transaction materially lengthens the contracted income profile of DigiCo’s Australian portfolio. On a pro-forma basis, its weighted average lease expiry rises from about three years to more than 10 years, with weighted average annual escalations of around 3%.
Contract underpins 52MW expansion
DigiCo has also executed a fixed-price lump-sum design and construction contract with Shape Australia for a 52MW expansion at SYD1. Laing O’Rourke will continue as integrated delivery partner and lead the overall program.
The project involves the adaptive reuse and expansion of an operating data-centre asset near the Sydney CBD, where approved grid capacity, water access and State Significant Development approval are already in place.
The first 10MW of the expansion is expected to be energised and generating income late in the fourth quarter of the 2027 financial year. The balance is planned to come online progressively through FY28 in line with the customer’s requirements.
DigiCo said the build remains fully funded from existing liquidity, debt facilities and proceeds from US asset sales, with no new equity required. Its combined capital-expenditure estimate for the SYD1 and 15MW ADL1 expansions remains A$1.2 billion across FY27 and FY28. FY27 capital expenditure is forecast at A$300 million to A$500 million, weighted to the second half.
A deeper Australian delivery pipeline
The agreement gives contractors and equipment suppliers a clearer delivery pathway across electrical infrastructure, cooling, fit-out, security and commissioning. Much of the work will occur inside an operating data centre, making uptime management and staged handover central to execution.
The 71MW customer contract also concentrates a substantial share of SYD1 capacity with one technology buyer. While the long lease and credit support improve cash-flow visibility, the capacity remains subject to customary conditions and approvals, and revenue will phase in as infrastructure is delivered.
DigiCo reaffirmed FY27 underlying EBITDA guidance of A$120 million to A$125 million. Together with its Adelaide expansion, the company expects the new Australian capacity to underpin a pathway to about A$250 million in stabilised annual platform EBITDA once the projects are occupied and billing.
The immediate operational test is the first 10MW delivery in late FY27. From there, the expansion must be commissioned in stages through FY28 while existing customer services remain online.
Source notes: DigiCo Infrastructure REIT ASX release, 15 October 2026; DigiCo SYD1 facility overview.
Featured image: illustrative data-centre equipment; photo by imgix via Unsplash.
